Catherwood LibraryILR School

Talks between the Spanish government and unions ended without a deal today, meaning that the government will change the labor laws by royal decree. Spain has a high unemployment rate, and the new laws will make it easier to fire people. A quarter of Spanish workers work under temporary contracts, and when they are fired they are given eights days of compensation for every year worked. Workers with open-ended contracts are given forty-five days of compensation for every year worked, and a third type of contract that is supposed to raise employment among all groups except men 31 to 45 years old gives thirty-three days of compensation for every year worked. A spokesman for the government said that the new reforms will make the third option more prevalent, and provide greater job security for temporary workers. This may be done with the government picking up some of the cost of firing. The Spanish government has been pressured by the IMF and the EU to make labor reforms to reduce their deficit. The reforms are due to be passed June 16.